Evaluation of Pipeline Strategy and Pricing in Oil and Gas Product Logistics in Iran

Reza  Faryab; Beytollah Akbari Moghadam; Alireza  Irajpour

Authors

Reza Faryab Department of Industrial Management, Qa.C., Islamic Azad University, Qazvin, Iran Author https://orcid.org/0009-0008-7364-0064
Beytollah Akbari Moghadam Department of Economic Sciences, Qa.C., Islamic Azad University, Qazvin, Iran https://orcid.org/0000-0002-9858-8505
Alireza Irajpour Department of Industrial Management, Qa.C., Islamic Azad University, Qazvin, Iran Author https://orcid.org/0009-0003-3040-6378

Keywords:

Strategy Evaluation, Pipeline Pricing, Oil and Gas Logistics, Fuzzy Goal Programming, Stackelberg Game Theory

Abstract

The present study aims to evaluate pipeline pricing strategies in Iran's oil and gas product logistics and to analyze their economic, operational, environmental, and regulatory implications, with a case study of Payandan Company. This research was conducted using a mixed-methods approach in three stages. In the first stage, semi-structured interviews with industry experts and thematic analysis were employed to identify and classify the most important factors and criteria influencing pipeline pricing strategy. In the second stage, pricing strategies were evaluated based on a set of economic, operational, environmental, and regulatory objectives and constraints using a fuzzy goal programming model. At this stage, the degree of alignment of different strategies with the multiple objectives of the pricing system and their approach to managing conflicts among objectives were examined. In the third stage, to analyze the interactions among the main actors of the pricing system, the results of the fuzzy goal programming model were incorporated into the Stackelberg game theory framework, and the strategic interaction among Payandan Company as the leader, major customers as followers, and the regulatory body was analyzed. The findings indicated that the combined regulated pricing strategy, compared to other examined strategies, demonstrates greater compatibility with the set of objectives and constraints defined in the pipeline pricing system and can establish a balance among profitability, cost control, risk reduction, service level, capacity utilization, environmental requirements, and regulatory requirements. Furthermore, the Stackelberg analysis results showed that the interactive structure among the transmission company, customers, and the regulatory body plays a significant role in determining tariffs and their economic implications, such that tariff determination under equilibrium conditions, while complying with regulatory constraints, affects the company's profit, customer conditions, and overall system efficiency. Sensitivity analysis also indicated that the model results exhibit acceptable stability against changes in key parameters. Based on the research findings, the simultaneous evaluation of economic, operational, environmental, and regulatory dimensions can provide a basis for revising and designing pricing mechanisms for pipeline transmission services in Iran's oil and gas product logistics chain.

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